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Financial challenges that could arise during divorce

On Behalf of | Oct 31, 2019 | Divorce

Many couples in Texas who are going through a divorce are re-examining their investments to make sure that their finances are in line with what they want after divorce. It’s not a surprise to anyone that during marriage, problems with money arise. Many couples say that money issues were one of the primary reasons for their eventual divorce. Financial challenges after the divorce can affect people of any age, but they have a greater impact on individuals who are near retirement.

That is why it may be beneficial for individuals who are nearing retirement and going through the divorce process to look at their investments with a critical eye. It is common for spouses to name each other as beneficiaries of investment accounts, life insurance policies, etc. However, after divorce, most people do not want their ex-spouse as a beneficiary. Unfortunately, some forget to go through the process of removing their ex-spouse. This can lead to all sorts of problems in the future.

Other problems connected to investments may arise because one of the two spouses does not have all of the information pertaining to the couple’s joint investments. It is common in a marriage for one of the two spouses to be responsible for managing investment accounts. The other spouse may not have access to the accounts, they may not know how much sits in each account, and they may not know the passwords or usernames to login to said accounts. This is why it’s imperative for divorcing individuals to do their due diligence and find out what investments the couple actually has so that they can make sure the assets are fairly divided during the divorce.

Divorce is a challenging process that may require the help of a family law attorney. An attorney may be able to represent their client during the divorce process and give their client valuable information on the laws pertaining to property division, division of joint bank accounts and other pertinent information.